Court denies ASTA motion to halt pay recall

WASHINGTON -- The U.S. Bankruptcy Court for the Southern District
of Florida denied a motion by ASTA that would have prevented the
estate of Renaissance Cruises from recalling back commissions from
travel agents.

ASTA had sought to stay such collection efforts pending
resolution of the Society's lawsuit against the cruise line's
estate over the matter.

While expressing disappointment at the ruling, ASTA president
Richard Copland said in a statement that the Society nevertheless
remains "confident that the Renaissance commissions are not subject
to recall and that this principle will be vindicated in ongoing
litigation against the trustee."

The court didn't provide an explanation for denying the
Society's motion but left the door open for later refiling.

"The fact that he gave permission to refile signifies that, at
most, he thought this was not the right stage in the case to
address it," said Paul Ruden, ASTA staff senior vice president of
legal and industry affairs.

Much depends on whether the court allows the Society's lawsuit
against the Renaissance estate to move forward as a class action.
The court is expected to rule on that after a hearing slated for
Sept. 16.

"If [the judge] dismisses the class action, the issue of a stay
is moot," Ruden said.

In the meantime, Ruden advised agents who receive recall notices
from Renaissance to seek legal aid and respond to the notices.

"They have to defend themselves or they will experience default
judgments against them, and they will wind up being liable for
money they do not owe," he said.

ASTA filed the lawsuit on behalf of seven of its members July
25, with the intention of having it certified as a class action
encompassing all ASTA agents in the U.S.

The lawsuit challenges the Renaissance estate's recall of agency
commissions on cruises that didn't sail after the cruise line
ceased operations on Sept. 25, 2001.